MORGAN STANLEY — Capital/Financing Update 2012

Oct 9, 2012

STRUCTURED INVESTMENTS Morgan Stanley Free Writing Prospectus Dated October 9, 2012 Registration Statement No. 333-178081 Client Strategy Guide: October 2012 Offerings Filed Pursuant to Rule 433 [GRAPHIC OMITTED] This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 2 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Table of Contents Important Information Regarding Offering Documents..........................................................................................................................�...page 3 Selected Features & Risk Disclosures............................................................................................................................................page 4 Structured Investments Spectrum.................................................................................................................................................page 5 Tactical Offerings Offerings with terms of 18 months or less -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Enhanced Yield ...............................................................................................................................................page 6 Contingent Income Auto-Callable Securities based on Coach, Inc. (COH) by Morgan Stanley........................................................page 7 -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Leveraged Performance .............................................................................................................................................. page 8 PLUS(SM) based on the S & P 500(R) Index (SPX) by Morgan Stanley.................................................................................page 9 -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Strategic Offerings Offerings with terms of more than 18 months -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Enhanced Yield Contingent Income Auto-Callable Securities based on the EURO STOXX 50(R) Index (SX5E) by Morgan Stanley........................................page 10 -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Leveraged Performance ............................................................................................................................................. page 11 Trigger Jump Securities based on the PHLX Housing SectorSM Index (HGX) by Morgan Stanley......................................................page 12 ............................................................................................................................................. page 13 Lookback Entry Jump Securities based on Brent Blend Crude Oil (CO1) by Morgan Stanley........................................................ page 14 -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Market-Linked Notes and .............................................................................................................................................page 15 Market-Linked Deposits - FDIC Insured -------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------ Selected Risks & Considerations................................................................................................................................................page 16 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 3 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Important Information Regarding Offering Documents The products set forth in the following pages are intended as a general indication only of the Structured Investments offerings available through Morgan Stanley Wealth Management through the date when the ticketing closes for each offering. Morgan Stanley Wealth Management or the applicable issuer reserves the right to terminate any offering prior to its trade date, to postpone the trade date, or to close ticketing early on any offering. The information set forth herein provides only a summary of terms and does not contain the complete terms and conditions for any offering of an SEC Registered Offering or a Market-Linked Certificate of Deposit. You should read the complete offering materials referenced below before you invest in any product. Additional Information for SEC Registered (Public) Offerings Each issuer has separately filed a registration statement (including a prospectus) with the Securities & Exchange Commission (or SEC), for the offerings by that issuer to which this Strategy Guide relates. Before you invest in any of the offerings identified in this Strategy Guide, you should read the prospectus and the applicable registration statement, the applicable pricing supplement, prospectus supplements and any other documents relating to the offering that the applicable issuer has filed with the SEC for more complete information about the applicable issuer and the offering. You may get these documents without cost by visiting EDGAR on the SEC web site at www.sec.gov. o For Registered Offerings Issued by Morgan Stanley: Morgan Stanley's CIK on the SEC web site is 0000895421 Alternatively, Morgan Stanley Wealth Management will arrange to send you the prospectus and any other documents related to the offering electronically or hard copy if you so request by calling the toll-free number 1-800-584-6837 or emailing prospectus@morganstanley.com or by calling your Financial Advisor. The securities described herein (other than the market-linked certificates of deposit) are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank. Additional Information for Market-Linked Certificates of Deposit (MLDs) MLDs are not SEC registered offerings. Before you invest in any MLD, you should read the complete offering materials applicable to such MLD. For indicative terms and conditions on any Market-Linked Certificate of Deposit, please contact your Morgan Stanley Financial Advisor or call the toll-free number 1-800-584-6837. Each issuer listed above is the issuer for offerings only where expressly identified. None of the issuers are responsible for the filings made with the SEC by the other issuers identified in this document. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 4 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Selected Features & Risk Disclosures Features Structured Investments offer investors choices in terms of underlying asset, market view, time horizon, potential returns and risk tolerance. Such features may include: o Varying levels of exposure to potential capital appreciation or depreciation o Returns based on a defined formula o Variety of underlying assets, including equities, commodities, currencies and interest rates o Minimum investment of $1,000, unless otherwise noted Key Risks An investment in Structured Investments involves a variety of risks. The following are some of the significant risks related to Structured Investments. Please refer to the "Selected Risks & Considerations" section at the end of this brochure for a fuller description of these risk factors. The market price of Structured Investments may be influenced by a variety of unpredictable factors. Several factors may influence the value of a particular Structured Investment in the secondary market, including, but not limited to, the value and volatility of the underlying asset, interest rates, credit spreads charged by the market for taking the applicable issuer's credit risk, dividend rates on any equity underlying asset, and time remaining to maturity. In addition, we expect that the secondary market price of a Structured Investment will be adversely affected by the fact that the issue price of the Structured Investment includes the agent's commissions and expected profit. Issuer credit risk. All payments on Structured Investments are dependent on the applicable issuer's ability to pay all amounts due and therefore investors are subject to the credit risk of the applicable issuer. Secondary trading may be limited. There may be little or no secondary market for a particular Structured Investment. If the applicable pricing supplement so specifies, we may apply to list a Structured Investment on a securities exchange, but it is not possible to predict whether any Structured Investment will meet the listing requirements of that particular exchange, or if listed, whether any secondary market will exist. Appreciation potential or participation in the underlying asset may be limited. The terms of a Structured Investment may limit the maximum payment at maturity or the extent to which the return reflects the performance of the underlying asset. Potential loss of principal. The terms of a Structured Investment may not provide for the return of principal and an investment may result in a loss of some or all of your principal. Even where repayment of principal is provided for by the terms of the Structured Investment, it is still subject to the credit risk of the applicable issuer and the applicable issuer's ability to repay its obligations. In addition, you may receive less, and possibly significantly less, than the stated principal amount if you sell your investment prior to maturity. Structured Investments that provide for repayment of principal typically do not make periodic interest payments. Unlike ordinary debt securities, Structured Investments that provide for repayment of principal typically do not pay interest. Instead, at maturity, the investor receives the principal amount plus a supplemental redemption amount, if any, based on the performance of the underlying asset, in each case, subject to the credit risk of the applicable issuer. You may receive only the principal amount at maturity for Structured Investments that provide for repayment of principal. Because the supplemental redemption amount due at maturity on these Structured Investments may equal zero, the return on your investment (i.e., the effective yield to maturity) may be less than the amount that would be paid on an ordinary debt security. The return of only the principal amount at maturity may not compensate you for the effects of inflation or other factors relating to the value of money over time. Potential conflicts. The issuer of a Structured Investment and its affiliates may play a variety of roles in connection with the Structured Investment, including acting as calculation agent and hedging the issuer's obligations under the Structured Investment. Such activity could adversely affect the payouts to investors on Structured Investments. The aforementioned risks are not intended to be an exhaustive list of the risks associated with a particular Structured Investment offering. Before you invest in any Structured Investment, you should thoroughly review the particular investment's prospectus and related offering materials for a comprehensive description of the risks and considerations associated with the offering. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 5 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Structured Investments Spectrum Structured Investments can be divided into six broad categories, each aimed at offering structural characteristics designed to help investors pursue specific financial objectives - Market-Linked Deposits - FDIC Insured, Market-Linked Notes, Partial Principal at Risk Securities, Enhanced Yield, Leveraged Performance and Access. Market-Linked Deposits - FDIC Insured combine the repayment of all principal at o May be appropriate for investors who do not require periodic interest maturity, subject to applicable FDIC insurance limits and issuer credit risk, with payments, are concerned about principal at risk, and who are willing to the potential for capital appreciation based on the performance of an underlying forgo some upside in exchange for the repayment of all principal at asset. maturity, subject to applicable FDIC insurance limits and issuer credit risk. Market-Linked Notes combine the repayment of all principal at maturity subject to o May be appropriate for investors who do not require periodic interest issuer credit risk, with the potential for capital appreciation based on the payments, are concerned about principal at risk, do not require FDIC performance of an underlying asset. Market-Linked Notes do not have the benefit of insurance on their investment, and who are willing to forgo some upside FDIC insurance. in exchange for the repayment of all principal at maturity, subject to issuer credit risk. Partial Principal at Risk Securities combine the repayment of some principal at o May be appropriate for investors who do not require periodic interest maturity, subject to issuer credit risk, with the potential for capital appreciation payments, are concerned about principal at risk, do not require FDIC based on the performance of an underlying asset. insurance on their investment, and who are willing to risk a portion of their principal and forgo some upside return in exchange for the issuer's obligation to repay some principal at maturity. Enhanced Yield Investments seek to potentially generate current income greater than o May be appropriate for investors who are willing to forgo some or all of that of a direct investment in an underlying asset with the investor accepting full the appreciation in the underlying asset and assume full downside exposure to the downside with limited or no opportunity for capital appreciation. exposure to the underlying asset in exchange for enhanced yield in the form of above-market interest payments. Leveraged Performance Investments allow investors the possibility of capturing o May be appropriate for investors who expect only modest changes in the enhanced returns relative to an underlying asset's actual performance within a given value of the underlying asset and who are willing to give up range of performance in exchange for giving up returns above the specified cap, in appreciation on the underlying asset that is beyond the performance addition to accepting full downside exposure to the underlying asset. range, and bear the same or similar downside risk associated with owning the underlying asset. Access Investments provide exposure to a market sector, asset class, theme or o May be appropriate for investors interested in diversification of, and investment strategy that may not be easily accessible to an individual investor by exposure to, difficult to access underlying asset classes, market means of traditional investments. sectors or investment strategies. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 6 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- [Information related to offerings to be issued by issuers that are not affiliated with Morgan Stanley has been redacted] [Page left intentionally blank] --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 7 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Opportunities in U.S. Equities --------------------------- Enhanced Yield |_| Contingent Income Auto-Callable Securities based on Coach, Inc. (COH) --------------------------- ----------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------- Strategy o Potential yield enhancement strategy for investors with a range-bound view |X| All principal is at risk under the terms of on Coach, Inc. the securities Opportunity to receive a contingent quarterly coupon, provided that the |X| Investors will not participate in any underlying stock closes at or above the predetermined downside threshold level on appreciation of the underlying stock and the the related determination date return on the securities will be limited to the o The securities will be automatically redeemed for par plus the contingent contingent quarterly coupons earned during the Overview coupon payment if, on any determination date, the closing price of the underlying term of the securities stock is at or above the initial share price Risk |X| Contingent quarterly payments may be zero o The securities provide repayment of principal at maturity but only if the Considerations for some or all quarterly periods underlying stock closes at or above the predetermined downside threshold level on |X| All payments are subject to the credit risk the final determination date of the issuer ------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------- Contingent Income Auto-Callable Securities do not guarantee the payment of interest or the repayment of principal. Instead, the securities offer the opportunity for investors to earn a contingent quarterly payment equal to 3.75% to 4.50% of the stated principal amount, but only with respect to each determination date on which the closing price of the underlying stock is greater than or equal to 70% of the initial share price, which Morgan Stanley refers to as the downside threshold level. In addition, if the closing price of the underlying stock is greater than or equal to the initial share price on any determination date, the securities will be automatically redeemed for an amount per security equal to the stated principal amount and the contingent quarterly payment. However, if the securities are not automatically redeemed prior to maturity, the payment at maturity due on the securities will be either (i) the stated principal amount and any contingent quarterly payment or (ii) a number of shares of the underlying stock, or at Morgan Stanley's option the cash value thereof, that will be significantly less than the principal amount of the securities if the closing price of the underlying stock is below the downside threshold level on the final determination date. Moreover, if on any determination date the closing price of the underlying stock is less than the downside threshold level, you will not receive any contingent quarterly payment for that quarterly period. As a result, investors must be willing to accept the risk of not receiving any contingent quarterly payment and also the risk of receiving shares of the underlying stock, or the cash value thereof, that are worth significantly less than the stated principal amount of the securities and could be zero. Accordingly, investors could lose their entire initial investment in the securities. Investors will not participate in any appreciation of the underlying stock. The securities are senior unsecured obligations of Morgan Stanley, issued as part of Morgan Stanley's Series F Global Medium-Term Notes program. All payments on the securities are subject to the credit risk of Morgan Stanley. -------------------------------------------------------------------------------------------------------------------------------------------------------- Issuer Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------- Underlying Stock Coach, Inc. (COH) common stock -------------------------------------------------------------------------------------------------------------------------------------------------------- Maturity Date October , 2013 (approximately 1 year) -------------------------------------------------------------------------------------------------------------------------------------------------------- Early Redemption If, on any of the first three Determination Dates, the Determination Closing Price of the Underlying Stock is greater than or equal to the Initial Share Price, the securities will be automatically redeemed for an Early Redemption Payment on the third business day following the related Determination Date. -------------------------------------------------------------------------------------------------------------------------------------------------------- Early Redemption Payment The Early Redemption Payment will be an amount equal to (i) the Stated Principal Amount plus (ii) the Contingent Quarterly Payment with respect to the related Determination Date. -------------------------------------------------------------------------------------------------------------------------------------------------------- Determination Closing Price The closing price of the Underlying Stock on any Determination Date other than the Final Determination Date times the Adjustment Factor on such Determination Date -------------------------------------------------------------------------------------------------------------------------------------------------------- Contingent Quarterly Payment o If, on any Determination Date, the Determination Closing Price or the Final Share Price, as applicable, is greater than or equal to the Downside Threshold Level, the issuer will pay a Contingent Quarterly Payment of $0.375 to $0.45 (3.75% to 4.50% of the Stated Principal Amount) per security on the related Contingent Payment Date. The actual Contingent Quarterly Payment will be determined on the Pricing Date. o If, on any Determination Date, the Determination Closing Price or the Final Share Price, as applicable, is less than the Downside Threshold Level, no Contingent Quarterly Payment will be made with respect to that Determination Date. -------------------------------------------------------------------------------------------------------------------------------------------------------- Determination Dates January , 2013, April , 2013, July , 2013 and October , 2013, subject to postponement for non-trading days and certain market disruption events. October , 2013 is also referred to as the Final Determination Date. -------------------------------------------------------------------------------------------------------------------------------------------------------- Contingent Payment Dates With respect to each Determination Date other than the Final Determination Date, the third business day after the related Determination Date. The payment of the Contingent Quarterly Payment, if any, with respect to the Final Determination Date will be made on the Maturity Date. -------------------------------------------------------------------------------------------------------------------------------------------------------- Payment at Maturity o If the Final Share Price is greater than or equal to the Downside Threshold Level: (i) the Stated Principal Amount plus (ii) the Contingent Quarterly Payment with respect to the Final Determination Date o If the Final Share Price is less than the Downside Threshold Level: (i) a number of shares of the Underlying Stock equal to the product of the Exchange Ratio and the Adjustment Factor, each as of the Final Determination Date, or (ii) at the issuer's option, the cash value of such shares as of the Final Determination Date -------------------------------------------------------------------------------------------------------------------------------------------------------- Initial Share Price The closing price of the Underlying Stock on the Pricing Date -------------------------------------------------------------------------------------------------------------------------------------------------------- Final Share Price The closing price of the Underlying Stock on the Final Determination Date times the Adjustment Factor on such date -------------------------------------------------------------------------------------------------------------------------------------------------------- Exchange Ratio The Stated Principal Amount divided by the Initial Share Price -------------------------------------------------------------------------------------------------------------------------------------------------------- Adjustment Factor 1.0, subject to adjustment in the event of certain corporate events affecting the Underlying Stock -------------------------------------------------------------------------------------------------------------------------------------------------------- Downside Threshold Level 70% of the Initial Share Price -------------------------------------------------------------------------------------------------------------------------------------------------------- Issue Price/Stated Principal $10 per security Amount -------------------------------------------------------------------------------------------------------------------------------------------------------- Listing The securities will not be listed on any securities exchange. -------------------------------------------------------------------------------------------------------------------------------------------------------- Expected Pricing Date1 This offering is expected to close for ticketing on Tuesday, October 30, 2012 1 Expected Pricing Dates are subject to change. Due to market conditions, Morgan Stanley Wealth Management or the applicable issuer may close the deal prior to, or postpone, the Expected Pricing Date. Some terms are subject to change. Terms will be fixed on the pricing date for the investment. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 8 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- [Page left intentionally blank] --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 9 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Opportunities in U.S. Equities Leveraged Performance |_| PLUS(SM) based on the S & P 500(R) Index (SPX) ------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- o Leveraged exposure within a certain range of positive index performance and the same downside risk as a direct investment with 1-for-1 downside exposure |X| All principal is at risk under the terms of the PLUS Strategy o May be appropriate for investors anticipating moderate appreciation |X| Full downside exposure to the S & P 500(R) Index Overview of the S & P 500(R) Index and seeking enhanced returns within a certain range Risk |X| Appreciation potential is Iimited by the maximum payment of positive index performance, in exchange for an appreciation potential Considerations at maturity limited by the maximum payment at maturity |X| Does not provide for current income; no interest payments -------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- The PLUS are senior unsecured obligations of Morgan Stanley, will pay no interest, do not guarantee any return of principal at maturity and have the terms described in the accompanying product supplement for PLUS, index supplement and prospectus, as supplemented or modified by the applicable pricing supplement. At maturity, if the underlying index has appreciated in value, investors will receive the stated principal amount of their investment plus leveraged upside performance of the underlying index, subject to the maximum payment at maturity. However, if the underlying index has depreciated in value, investors will lose 1% for every 1% decline. The PLUS are for investors who seek an equity index-based return and who are willing to risk their principal and forgo current income and upside above the maximum payment at maturity in exchange for the leverage feature, which applies to a limited range of positive performance of the underlying index. Investors may lose their entire initial investment in the PLUS. The PLUS are senior notes issued as part of Morgan Stanley's Series F Global Medium-Term Notes program. All payments on the PLUS are subject to the credit risk of Morgan Stanley. ------------------------------------------------------------------------------------------------------------------------------------------------ Issuer Morgan Stanley ------------------------------------------------------------------------------------------------------------------------------------------------ Underlying Index S & P 500(R) Index (SPX) ------------------------------------------------------------------------------------------------------------------------------------------------ Maturity Date November , 2013 (approximately 13 months) ------------------------------------------------------------------------------------------------------------------------------------------------ Leverage Factor 300% ------------------------------------------------------------------------------------------------------------------------------------------------ Payment at Maturity o If the Final Index Value is greater than the Initial Index Value, $10 + Leveraged Upside Payment In no event will the Payment at Maturity exceed the Maximum Payment at Maturity. o If the Final Index Value is less than or equal to the Initial Index Value, $10 x Index Performance Factor This amount will be less than or equal to the Stated Principal Amount of $10. ------------------------------------------------------------------------------------------------------------------------------------------------ Leveraged Upside Payment $10 x Leverage Factor x Index Percent Increase ------------------------------------------------------------------------------------------------------------------------------------------------ Index Percent Increase (Final Index Value - Initial Index Value) / Initial Index Value ------------------------------------------------------------------------------------------------------------------------------------------------ Initial Index Value The closing value of the Underlying Index on the Pricing Date ------------------------------------------------------------------------------------------------------------------------------------------------ Final Index Value The closing value of the Underlying Index on the Valuation Date ------------------------------------------------------------------------------------------------------------------------------------------------ Valuation Date November , 2013, subject to adjustment for non-index business days and certain market disruption events ------------------------------------------------------------------------------------------------------------------------------------------------ Maximum Payment at Maturity $11.35 to $11.65 per PLUS (113.5% to 116.5% of the Stated Principal Amount) per PLUS. The actual Maximum Payment at Maturity will be determined on the Pricing Date. ------------------------------------------------------------------------------------------------------------------------------------------------ Index Performance Factor Final Index Value / Initial Index Value ------------------------------------------------------------------------------------------------------------------------------------------------ Issue Price/Stated Principal Amount $10 per PLUS ------------------------------------------------------------------------------------------------------------------------------------------------ Listing The PLUS will not be listed on any securities exchange. ------------------------------------------------------------------------------------------------------------------------------------------------ Expected Pricing Date1 This offering is expected to close for ticketing on Tuesday, October 30, 2012 ------------------------------------------------------------------------------------------------------------------------------------------------ 1 Expected Pricing Dates are subject to change. Due to market conditions, Morgan Stanley Wealth Management or the applicable issuer may close the deal prior to, or postpone, the Expected Pricing Date. Some terms are subject to change. Terms will be fixed on the pricing date for the investment. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 10 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Opportunities in International Equities --------------------------- Enhanced Yield |_| Contingent Income Auto-Callable Securities based on the EURO STOXX 50(R) Index (SX5E) --------------------------- ----------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------- Strategy o Potential yield enhancement strategy for investors with a range-bound view |X| All principal is at risk under the terms of the securities on the EURO STOXX 50(R) Index (SX5E) |X| Investors will not participate in any Opportunity to receive a contingent quarterly coupon, provided that the appreciation of the underlying index and the underlying index closes at or above the predetermined barrier level on the related return on the securities will be limited to the observation date contingent quarterly coupons earned during the o The securities will be automatically redeemed for par plus the contingent term of the securities Overview quarterly coupon if, on any redemption determination date, the closing value of |X| Contingent quarterly coupons may be zero the underlying index is at or above the initial index value for some or all quarterly periods o The securities provide repayment of principal at maturity but only if the Risk |X| Risks associated with investments in underlying index closes at or above the predetermined barrier level on the final Considerations securities linked to the value of foreign equity observation date securities |X| All payments are subject to the credit risk of the issuer ----------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------- The securities offered are senior unsecured obligations of Morgan Stanley and have the terms described in the accompanying product supplement, index supplement and prospectus, as supplemented or modified by the applicable pricing supplement. The securities do not guarantee the repayment of principal and do not provide for the regular payment of interest. Instead, the securities will pay a contingent quarterly coupon but only if the index closing value of the EURO STOXX 50(R) Index is at or above the barrier level on the related observation date. However, if the index closing value is less than the barrier level on any observation date, Morgan Stanley will pay no interest for the related quarterly period. In addition, the securities will be automatically redeemed if the index closing value is greater than or equal to the initial index value on any quarterly redemption determination date for the early redemption payment equal to the sum of the stated principal amount plus the related contingent quarterly coupon. If the securities have not previously been redeemed and the final index value is greater than or equal to the barrier level, the payment at maturity will also be the sum of the stated principal amount and the related contingent quarterly payment. However, if the final index value is less than the barrier level, investors will be exposed to the decline in the underlying index on a 1 to 1 basis and will receive a payment at maturity that is less than 70% of the stated principal amount of the securities and could be zero. Accordingly, investors in the securities must be willing to accept the risk of losing their entire initial investment and also the risk of not receiving any contingent quarterly payment. The securities are for investors who are willing to risk their principal and seek an opportunity to earn interest at an above-market rate in exchange for the risk of receiving no quarterly interest over the 3-year term and in exchange for the possibility of an automatic early redemption prior to maturity. Investors will not participate in any appreciation of the EURO STOXX 50(R) Index. The securities are senior notes issued as part of Morgan Stanley's Series F Global Medium-Term Notes program. All payments on the securities are subject to the credit risk of Morgan Stanley. ---------------------------------------------------------------------------------------------------------------------------------------------------- Issuer Morgan Stanley ---------------------------------------------------------------------------------------------------------------------------------------------------- Underlying Index EURO STOXX 50(R) Index (SX5E) ---------------------------------------------------------------------------------------------------------------------------------------------------- Maturity Date October , 2015 (approximately 3 years) ---------------------------------------------------------------------------------------------------------------------------------------------------- Early Redemption If, on any Redemption Determination Dates, beginning on the third business day preceding November , 2013, the index closing value is greater than or equal to the Initial Index Value, the securities will be automatically redeemed for an Early Redemption Payment on the related Early Redemption Date. ---------------------------------------------------------------------------------------------------------------------------------------------------- Early Redemption Payment The Early Redemption Payment will be an amount equal to (i) the Stated Principal Amount plus (ii) the Contingent Quarterly Coupon with respect to the related Determination Date. ---------------------------------------------------------------------------------------------------------------------------------------------------- Redemption Determination Dates Quarterly, on the third business day preceding each scheduled Early Redemption Date, subject to postponement for non-index business days and certain market disruption events. ---------------------------------------------------------------------------------------------------------------------------------------------------- Quarterly, on the day of each February, May, August and November, beginning November , 2013 and ending August , 2015; provided that if any Early Redemption Dates such day is not a business day, that Early Redemption Payment will be made on the next succeeding business day and no adjustment will be made to any Early Redemption Payment on that succeeding business day ---------------------------------------------------------------------------------------------------------------------------------------------------- Contingent Quarterly Coupon A contingent coupon of 7% to 9% per annum will be paid on the securities on each Coupon Payment Date but only if the index closing value of the Underlying Index is at or above the Barrier Level on the related Observation Date. The actual Contingent Quarterly Coupon will be determined on the Pricing Date. If on any Observation Date, the index closing value is less than the Barrier Level, Morgan Stanley will pay no coupon for the applicable quarterly period. It is possible that the Underlying Index will remain below the Barrier Level for extended periods of time or even throughout the entire 3-year term of the securities so that you will receive no Contingent Quarterly Coupons. ---------------------------------------------------------------------------------------------------------------------------------------------------- Barrier Level 70% of the Initial Index Value ---------------------------------------------------------------------------------------------------------------------------------------------------- Quarterly, on the day of each February, May, August and November, beginning February , 2013, except that the Contingent Quarterly Coupon, if any, with respect to the Final Observation Date shall be paid on the Maturity Date; provided that if any such day is not a business day, that Coupon Payment Dates coupon payment will be made on the next succeeding business day and no adjustment will be made to any coupon payment made on that succeeding business day ---------------------------------------------------------------------------------------------------------------------------------------------------- Observation Dates The third business day preceding each scheduled Coupon Payment Date, beginning with February , 2013 Coupon Payment Date, subject to postponement for non-index business days and certain market disruption events ---------------------------------------------------------------------------------------------------------------------------------------------------- Payment at Maturity o If the Final Index Value is greater than or equal to the Barrier Level: (i) the Stated Principal Amount plus (ii) the Contingent Quarterly Coupon with respect to the Final Observation Date o If the Final Index Value is less than the Barrier Level: (i) the Stated Principal Amount multiplied by (ii) the Index Performance Factor ---------------------------------------------------------------------------------------------------------------------------------------------------- Initial Index Value The index closing value of the Underlying Index on the Pricing Date ---------------------------------------------------------------------------------------------------------------------------------------------------- Final Index Value The index closing value of the Underlying Index on the Final Observation Date ---------------------------------------------------------------------------------------------------------------------------------------------------- Index Performance Factor Final Index Value divided by the Initial Index Value ---------------------------------------------------------------------------------------------------------------------------------------------------- Issue Price/Stated Principal Amount $1,000 per security ---------------------------------------------------------------------------------------------------------------------------------------------------- Listing The securities will not be listed on any securities exchange. ---------------------------------------------------------------------------------------------------------------------------------------------------- Expected Pricing Date1 This offering is expected to close for ticketing on Tuesday, October 30, 2012 ---------------------------------------------------------------------------------------------------------------------------------------------------- 1 Expected Pricing Dates are subject to change. Due to market conditions, Morgan Stanley Wealth Management or the applicable issuer may close the deal prior to, or postpone, the Expected Pricing Date. Some terms are subject to change. Terms will be fixed on the pricing date for the investment. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 11 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- [Page left intentionally blank] --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 12 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Opportunities in U.S. Equities Leveraged Performance |_| Trigger Jump Securities based on the PHLX Housing SectorSM Index (HGX) -------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- |X| All principal is at risk under the terms of the Trigger o Opportunity to earn a fixed upside payment if the PHLX Housing Jump Securities SectorSM Index has appreciated as of the valuation date; |X| Full downside exposure to the negative performance of the o Limited protection against negative performance of the PHLX Housing PHLX Housing SectorSM Index if the PHLX Housing SectorSM Index Strategy SectorSM Index; closes below the downside threshold on the valuation date Overview o Maybe appropriate for investors who anticipate a moderate price |X| Appreciation potential is limited to the fixed upside appreciation of the PHLX Housing SectorSM Index and are seeking limited Risk payment at maturity protection against loss of principal Considerations |X| Does not provide for current income; no interest payments o The loss protection applies only if PHLX Housing SectorSM Index |X| Risks associated with investments in securities closes at or above the specified downside threshold on the valuation date concentrated solely in the housing sector -------------- ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------- The Trigger Jump Securities, which Morgan Stanley refers to as the securities, are senior unsecured obligations of Morgan Stanley, will pay no interest, and do not guarantee the return of any of the principal at maturity and have the terms described in the accompanying product supplement for Jump Securities, index supplement and prospectus, as supplemented or modified by the applicable pricing supplement. If the underlying index appreciates at all as of the valuation date, you will receive the stated principal amount for each security that you hold at maturity plus the upside payment of $2.45 to $2.75 per security, to be determined on the pricing date. However, if the underlying index declines in value by more than 20% as of the valuation date from its initial value, the payment due at maturity will be less than the stated principal amount of the securities by an amount that is proportionate to the percentage decrease in the final index value from the initial index value. This amount will be less than $8 and could be zero. Accordingly, you may lose your entire initial investment in the securities. The securities are for investors who seek an equity index-based return and who are willing to risk their principal and forgo current income and some upside in exchange for the upside payment feature that applies to a limited range of the performance of the underlying index. The securities are senior notes issued as part of Morgan Stanley's Series F Global Medium-Term Note Program. All payments on the securities are subject to the credit risk of Morgan Stanley. ------------------------------------------------------------------------------------------------------------------------------------------------ Issuer Morgan Stanley ------------------------------------------------------------------------------------------------------------------------------------------------ Underlying Index PHLX Housing SectorSM Index (HGX) ------------------------------------------------------------------------------------------------------------------------------------------------ Maturity Date October , 2014 (approximately 2 years) ------------------------------------------------------------------------------------------------------------------------------------------------ Payment at Maturity o If the Final Index Value is greater than the Initial Index Value: $10 + the Upside Payment o If the Final Index Value is less than or equal to the Initial Index Value but greater than or equal to the Downside Threshold, meaning the value of the Underlying Index has remained unchanged or has declined by no more than 20% from the Initial Index Value: $10 o If the Final Index Value is less than the Downside Threshold, meaning the value of the Underlying Index has declined by more than 20% from the Initial Index Value: $10 x the Index Performance Factor This amount will be less than the Stated Principal Amount of $10, and will represent a loss of at least 20%, and possibly all, of your investment. ------------------------------------------------------------------------------------------------------------------------------------------------ Upside Payment $2.45 to $2.75 per security (24.5% to 27.5% of the Stated Principal Amount), to be determined on the Pricing Date ------------------------------------------------------------------------------------------------------------------------------------------------ Downside Threshold 80% of the Initial Index Value ------------------------------------------------------------------------------------------------------------------------------------------------ Index Performance Factor Final Index Value / Initial Index Value ------------------------------------------------------------------------------------------------------------------------------------------------ Initial Index Value The closing value of the Underlying Index on the Pricing Date ------------------------------------------------------------------------------------------------------------------------------------------------ Final Index Value The closing value of the Underlying Index on the Valuation Date ------------------------------------------------------------------------------------------------------------------------------------------------ Valuation Date October , 2014, subject to postponement for non-index business days and certain market disruption events ------------------------------------------------------------------------------------------------------------------------------------------------ Issue Price/Stated Principal Amount $10 per security ------------------------------------------------------------------------------------------------------------------------------------------------ Listing The securities will not be listed on any securities exchange. ------------------------------------------------------------------------------------------------------------------------------------------------ Expected Pricing Date1 This offering is expected to close for ticketing on Tuesday, October 30, 2012 1 Expected Pricing Dates are subject to change. Due to market conditions, Morgan Stanley Wealth Management or the applicable issuer may close the deal prior to, or postpone, the Expected Pricing Date. Some terms are subject to change. Terms will be fixed on the pricing date for the investment. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 13 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- [Page left intentionally blank] --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 14 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Opportunities in Commodities Leveraged Performance |_| Lookback Entry Jump Securities based on Brent Blend Crude Oil (CO1) -------------- ------------------------------------------------------------------------------ ---------------- --------------------------------------------------------------------- |X| All principal is at risk under the terms of the Jump Opportunity to earn the greater of a fixed upside payment and a Securities payment based on the performance of the Brent blend crude oil if it has |X| Full downside exposure to Brent Blend Crude Oil appreciated at all as of the valuation date as compared to the lowest |X| Appreciation potential is limited by the maximum payment Strategy commodity price during the lookback observation period, subject to a at maturity Overview maximum payment at maturity |X| The initial commodity price will not be determined until o Maybe appropriate for investors who anticipate a price appreciation Risk the end of the lookback observation period of Brent blend crude oil, in exchange for an appreciation potential Considerations |X| Does not provide for current income; no interest payments limited by the maximum payment at maturity and the same downside risk as |X| Risks associated with investing in a single commodity a direct investment with 1-for-1 downside exposure (Brent blend crude oil) --------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- The Lookback Entry Jump Securities offer the opportunity to earn a return based on the performance of Brent blend crude oil. Unlike ordinary debt securities, the Lookback Entry Jump Securities, which Morgan Stanley refers to as the securities, do not pay interest and do not guarantee the return of any of the principal at maturity. Instead, at maturity, you will receive for each security that you hold an amount in cash that will vary depending on the performance of Brent blend crude oil (the "underlying commodity") as determined on the valuation date and as compared to the initial commodity price, which will be the lowest commodity price during the lookback observation period. If the underlying commodity appreciates at all as of the valuation date from the initial commodity price, you will receive for each security that you hold at maturity a minimum of $200 to $220 (to be determined on the pricing date) in addition to the stated principal amount. If the underlying commodity appreciates by more than 20% to 22% (to be determined on the pricing date) as of the valuation date, you will receive for each security that you hold at maturity the stated principal amount plus an amount based on the percentage increase of the underlying commodity, subject to the maximum payment at maturity. However, if the price of the underlying commodity remains unchanged or declines as of the valuation date from the initial commodity price, the payment at maturity will be equal to or less than the stated principal amount by an amount that is proportionate to any percentage decrease in the final commodity price from the initial commodity price. You could lose your entire initial investment in the securities. The securities are for investors who seek a Brent blend crude oil-based return and who are willing to risk their principal and forgo current income and upside above the maximum payment at maturity in exchange for the upside jump payment feature and the lookback feature in determining the initial commodity price. The securities are senior notes issued as part of Morgan Stanley's Series F Global Medium-Term Notes program. All payments on the securities are subject to the credit risk of Morgan Stanley. ------------------------------------------------------------------------------------------------------------------------------------------------ Issuer Morgan Stanley ------------------------------------------------------------------------------------------------------------------------------------------------ Underlying Commodity Brent blend crude oil ------------------------------------------------------------------------------------------------------------------------------------------------ Maturity Date October , 2015 (approximately 3 years) ------------------------------------------------------------------------------------------------------------------------------------------------ Payment at Maturity o If the Final Commodity Price is greater than the Initial Commodity Price: $1,000 + the greater of (i) $1,000 x the Commodity Percent Change and (ii) the Upside Payment In no event will the Payment at Maturity be greater than $2,000 per security. o If the Final Commodity Price is equal to or less than the Initial Commodity Price: $1,000 x Commodity Performance Factor This amount will be equal to or less than the Stated Principal Amount of $1,000 and could be zero. Accordingly, you could lose your entire initial investment in the securities. ------------------------------------------------------------------------------------------------------------------------------------------------ Upside Payment $200 to $220 per security (20% to 22% of the Stated Principal Amount), to be determined on the Pricing Date ------------------------------------------------------------------------------------------------------------------------------------------------ Commodity Percent Change (Final Commodity Price - Initial Commodity Price) / Initial Commodity Price ------------------------------------------------------------------------------------------------------------------------------------------------ Commodity Performance Factor Final Commodity Price / Initial Commodity Price ------------------------------------------------------------------------------------------------------------------------------------------------ Maximum Payment at Maturity $2,000 per security (200% of the Stated Principal Amount) ------------------------------------------------------------------------------------------------------------------------------------------------ Initial Commodity Price The lowest commodity price during the Lookback Observation Period. In no event will the Initial Commodity Price be greater than the commodity price on the Pricing Date. ------------------------------------------------------------------------------------------------------------------------------------------------ Final Commodity Price The commodity price on the Valuation Date, subject to adjustment for non-trading days and certain market disruption events. ------------------------------------------------------------------------------------------------------------------------------------------------ Lookback Observation Period Each trading day on which there is no market disruption event during the period from and including the Pricing Date to and including December , 2012. ------------------------------------------------------------------------------------------------------------------------------------------------ Commodity Price For any trading day, the official settlement price per barrel of Brent blend crude oil on ICE Futures Europe ("ICE") of the first nearby month futures contract, as stated in U.S. dollars, as made public by ICE on such day. ------------------------------------------------------------------------------------------------------------------------------------------------ Valuation date October , 2015, subject to adjustment for non-trading days and certain market disruption events. ------------------------------------------------------------------------------------------------------------------------------------------------ Issue Price/Stated Principal Amount $1,000 per security ------------------------------------------------------------------------------------------------------------------------------------------------ Listing The securities will not be listed on any securities exchange. ------------------------------------------------------------------------------------------------------------------------------------------------ Expected Pricing Date1 This offering is expected to close for ticketing on Tuesday, October 30, 2012 ------------------------------------------------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 15 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- [Page left intentionally blank] --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 16 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Selected Risks & Considerations An investment in Structured Investments involves a variety of risks. Structured Investments may be linked to a wide variety of underlying assets, and each underlying asset will have its own unique set of risks and considerations. For example, some underlying assets have significantly higher volatility than others. Before you invest in any Structured Investment, you should thoroughly review the relevant prospectus and related offering materials for a comprehensive description of the risks associated with the Structured Investment, including the risks related to the underlying asset(s) to which the Structured Investment is linked. The following are general risks applicable to most types of Structured Investments: Issuer Credit Risk All payments on Structured Investments are subject to the credit risk of the applicable issuer. Any payments of interest or payments at maturity on a Structured Investment are subject to the credit risk of the applicable issuer and the issuer's credit ratings and credit spreads may adversely affect the market value of the Structured Investment. Investors are dependent on the applicable issuer's ability to pay periodic interest payments, if any, and all amounts due on the Structured Investment at maturity and therefore investors are subject to the credit risk of the applicable issuer and to changes in the market's view of the applicable issuer's credit risk. If the applicable issuer defaults on its obligations under the Structured Investment, the investor's investment would be at risk and an investor could lose some or all of its investment. Any decline in the applicable issuer's credit ratings or increase in the credit spreads charged by the market for taking credit risk of the issuer is likely to adversely affect the value of the Structured Investment. Furthermore, unless issued as market-linked certificate of deposit, Structured Investments are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank. Market Risk The price at which a particular Structured Investment may be sold prior to maturity will depend on a number of factors and may be substantially less than the amount for which they were originally purchased. Some of these factors include, but are not limited to: (i) changes in the level of the underlying asset or reference index, (ii) volatility of the underlying asset or reference index, (iii) changes in interest rates, (iv) any actual or anticipated changes in the credit ratings of the applicable issuer or credit spreads charged by the market for taking the issuer's credit risk and (v) the time remaining to maturity. In addition, we expect that the secondary market prices of a Structured Investment will be adversely affected by the fact that the issue price of the securities includes the agent's commissions and expected profit. You may receive less, and possibly significantly less, than the stated principal amount if you sell your investments prior to maturity. Liquidity Risk There may be little or no secondary market for a particular Structured Investment and you should be prepared to hold your investments until maturity. If the applicable pricing supplement so specifies, we may apply to list a particular Structured Investment on a securities exchange, but it is not possible to predict whether any Structured Investment will meet the listing requirements of that particular exchange, or if listed, whether any secondary market will exist. Therefore, there may be little or no secondary market for Structured Investments. Issuers may, but are not obligated to, make a market in the Structured Investments. Even if there is a secondary market for a particular Structured Investment, it may not provide enough liquidity to allow you to trade or sell your Structured Investment easily. Because it is not expected that other broker-dealers will participate significantly in the secondary market for Structured Investments, the price at which you may be able to trade a Structured Investment is likely to depend on the price, if any, at which Morgan Stanley Wealth Management or another broker-dealer affiliated with the particular issuer of the security is willing to transact. If at any time Morgan Stanley Wealth Management or any other broker dealer were not to make a market in Structured Investments, it is likely that there would be no secondary market for Structured Investments. Past Performance Not Indicative of Future Results The historical performance of an underlying asset or reference index is not an indication of future performance. Historical performance of an underlying asset or reference index to which a specific Structured Investment is linked should not be taken as an indication of the future performance of the underlying asset or reference index during the term of the Structured Investment. Changes in the levels of the underlying asset or reference index will affect the trading price of the Structured Investment, but it is impossible to predict whether such levels will rise or fall. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 17 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Conflicts of Interest The applicable issuer, its affiliates, Morgan Stanley Wealth Management and/or its affiliates may be market participants. The applicable issuer, one or more of its affiliates or Morgan Stanley Wealth Management or its affiliates may, currently or in the future, publish research reports with respect to movements in the underlying asset to which any specific Structured Investment is linked. Such research is modified from time to time without notice and may express opinions or provide recommendations that are inconsistent with purchasing or holding a specific Structured Investment or Structured Investments generally. Any of these activities could affect the market value of a specific Structured Investment or Structured Investments generally. In most Structured Investments, an affiliate of Morgan Stanley or the applicable issuer is designated to act as calculation agent to calculate the periodic interest or payment at maturity due on the Structured Investment. Any determinations made by the calculation agent may affect the payout to investors. Hedging & Trading Activity Hedging and trading activity by the issuer and its subsidiaries and affiliates could potentially adversely affect the value of the Structured Investments. We expect that the calculation agent and its affiliates for a particular Structured Investment will carry out hedging activities related to that Structured Investment, including trading in the underlying asset, as well as in other instruments related to the underlying asset. The issuer's subsidiaries and affiliates may also trade in the underlying asset and other instruments related to the underlying asset on a regular basis as part of their general broker-dealer and other businesses. Any of these hedging or trading activities on or prior to the pricing date and during the term of the Structured Investment could adversely affect the value of the underlying asset, and, accordingly, the payout to investors. Commissions & Hedging Profits The inclusion of commissions and projected profit from hedging in the original issue price is likely to adversely affect secondary market prices of Structured Investments. Assuming no change in market conditions or any other relevant factors, the price, if any, at which any dealer is willing to purchase Structured Investments in secondary market transactions will likely be lower than the original issue price, since the original issue price includes, and secondary market prices are likely to exclude, commissions paid with respect to the Structured Investments, as well as the cost of hedging the applicable issuer's obligations under the Structured Investments. The cost of hedging includes the projected profit that the calculation agent and its affiliates may realize in consideration for assuming the risks inherent in managing the hedging transactions. In addition, any secondary market prices may differ from values determined by pricing models used by the dealer as a result of dealer discounts, mark-ups or other transaction costs. With respect to any MLD offering, you can only count on FDIC insurance to cover the deposit amount of each MLD and, if applicable, the minimum index interest. In the event that FDIC insurance payments become necessary for the MLDs prior to the maturity date, the FDIC is only required to pay the Deposit Amount of the MLDs together with any accrued minimum index interest, if any, as prescribed by law, and subject to the applicable FDIC insurance limits. FDIC insurance is not available for any index interest if the applicable issuer fails prior to the maturity date, in the case of the MLDs. FDIC insurance is also not available for any secondary market premium paid by a depositor above the principal amount of an MLD. Except to the extent insured by the FDIC, the MLDs are not otherwise insured by any governmental agency or instrumentality or any other person. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This material was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, or Citigroup Global Markets Inc. and you October 2012 should not regard it as a research report. Please see the offering materials for complete product disclosure including tax disclosure and related risks.

Morgan Stanley -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Client Strategy Guide: October 2012 Offerings Page 18 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- IMPORTANT INFORMATION AND QUALIFICATIONS: This material was prepared by sales, trading or other non-research personnel of Morgan Stanley Smith Barney LLC (together with its affiliates hereinafter, "Morgan Stanley Wealth Management," or "the firm"). Morgan Stanley Wealth Management was formed pursuant to a Joint Venture between Citigroup Inc. and Morgan Stanley & Co. LLC ("Morgan Stanley & Co."). This material was not produced by a research analyst of Morgan Stanley & Co., Citigroup Global Markets Inc., ("Citigroup") or Morgan Stanley Wealth Management, although it may refer to a Morgan Stanley & Co., Citigroup, or Morgan Stanley Wealth Management research analyst or report. Unless otherwise indicated, these views (if any) are the author's and may differ from those of the aforementioned research departments or others in the firms. We remind investors that these investments are subject to market risk and will fluctuate in value. The investments discussed or recommended in this communication may be unsuitable for investors depending upon their specific investment objectives and financial position. No representation or warranty is made that any returns indicated will be achieved. Potential investors should be aware that certain legal, accounting and tax restrictions, margin requirements, commissions and other transaction costs may significantly affect the economic consequences of the transactions discussed herein. The information and analyses contained herein are not intended as tax, legal or investment advice and may not be suitable for your specific circumstances. These materials may not be distributed in any jurisdiction where it is unlawful to do so. The products described in this communication may not be marketed or sold or be available for offer or sale in a number of jurisdictions where it is unlawful to do so. This publication is disseminated in Japan by Morgan Stanley Japan Limited; in Hong Kong by Morgan Stanley Asia Limited; in Singapore by Morgan Stanley Asia (Singapore) Pte., regulated by the Monetary Authority of Singapore, which accepts responsibility for its contents; in Australia by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, a licensed dealer, which accepts responsibility for its contents; in Canada by Morgan Stanley Canada Limited, which has approved of, and has agreed to take responsibility for, the contents of this publication in Canada; in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that this document has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the United States by Morgan Stanley & Co. LLC, which accepts responsibility for its contents; and in the United Kingdom, this publication is approved by Morgan Stanley & Co. International PLC, solely for the purposes of section 21 of the Financial Services and Markets Act 2000 and is distributed in the European Union by Morgan Stanley & Co. International PLC, except as provided above. Private U.K. investors should obtain the advice of their Morgan Stanley & Co. International PLC representative about the investments concerned. In placecountry-regionAustralia, this publication, and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. Any estimates, projections or predictions (including in tabular form) given in this communication are intended to be forward-looking statements. Although Morgan Stanley believes that the expectations in such forward-looking statement are reasonable, it can give no assurance that any forward-looking statements will prove to be correct. Such estimates are subject to actual known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those projected. These forward-looking statements speak only as of the date of this communication. Morgan Stanley expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in its expectations or any change in circumstances upon which such statement is based. Prices indicated are Morgan Stanley offer prices at the close of the date indicated. Actual transactions at these prices may not have been effected. The trademarks and service marks contained herein are the property of their respective owners. Additional information on recommended securities discussed herein is available on request. This communication or any portion hereof, may not be reprinted, resold or redistributed without the prior written consent of Morgan Stanley. "PLUSSM" is a service mark of Morgan Stanley. "Standard & Poor's(R)," "S & P(R)" and "S & P 500(R)" are trademarks of Standard & Poor's Financial Services LLC ("S & P") and have been licensed for use. The securities are not sponsored, endorsed, sold or promoted by S & P, and S & P makes no representation regarding the advisability of investing in the securities. "EURO STOXX 50(R)" and "STOXX(R)" are registered trademarks of STOXX Limited and have been licensed for use for certain purposes by Morgan Stanley. PHLX Housing SectorSM and HGXSM are registered service marks of the NASDAQ OMX Group, Inc. and have been licensed for use. (C) 2012 Morgan Stanley Smith Barney LLC. Member SIPC. 10/12